Paris (AFP)

The Paris Bourse lost confidence Wednesday at the mid-meeting (-1.80%), the risk aversion having clearly taken over against rising trade tensions.

At 1:35 pm (1135 GMT), the CAC 40 index lost 95.39 points to 5.217.30 points, in a trading volume of 1.38 billion euros. The day before, it had closed down 0.44%.

The Parisian coast was nested in the red since the opening.

Wall Street was about to open down. The Dow Jones Industrial Average index futures contract was down 0.63%, the broad S & P index was down 0.57% and the Nasdaq, with a strong technological edge, was down 0.78%.

In response to recent US sanctions, Chinese telecom giant Huawei on Wednesday announced a seizure of US justice against the Trump administration, while Beijing threatens to reduce its exports of rare earth metals essential to the high-tech sector.

The world leader in 5G (the fifth generation of mobile networks), was recently blacklisted in the name of national security, preventing US companies to sell technology equipment.

These trade tensions are "perhaps the main risk, the main threat to the global economic environment and simultaneously to financial stability," said ECB Vice President Luis De Guindos.

This fear of growth led to a rush of investors on bonds considered safe havens on Tuesday, resulting in a sharp decline in US long-term rates.

"The trade stalemate between China and the United States continues to make some noise and in light of the recent escalation of trade tensions, investors do not have much hope that an agreement will be signed soon", comments David Madden, analyst at CMC Markets.

"This climate, to which we must add the Brexit, or the upcoming confrontation between Italy and the European Commission with a fine of 3 billion euros to the key, feeds the risk aversion that hangs over the world stock exchanges" observes Franklin Pichard, Managing Director of Kiplink Finance. "As the end of the semester comes, the expected lifting of the problems goes away and turns into a more intense fog."

The European Commission will send a letter Wednesday afternoon to the ruling populist government in Italy asking for "clarifications" on the deterioration of its public finances.

On the statistical side, the rise in consumer prices in France slowed slightly in May to 1% over one year. Growth was confirmed at 0.3% in the first quarter.

The unemployment rate in Germany rose slightly in May for the first time since the end of 2013.

- EuropaCorp catapulted -

EuropaCorp soared 119.94% to 1.37 euros. According to Les Echos, the group Pathé has made a takeover bid on the company Luc Besson.

Elior limited the breakage (-2.68% to 10.53 euros) after being violently sanctioned soon after the opening due to a downward revision of its organic growth prospects.

ArcelorMittal was down 4.39% to 13.50 euros following the announcement of further measures to reduce its crude steel production in Europe.

Pierre and Vacances was crumbling 4.59% to 16.22 euros, suffering an aggravated loss in the first half, to 121 million euros, attributed to seasonal effects "accentuated".

Casino fell by 3.24% to 31.38 euros, under the impact of the downgrade of two notches ("BB-" to "B") of its rating by the rating agency S & P.

Figeac Aéro sold 2.50% to 10.54 euros despite a turnover up 14.9%.

EDF advanced by 2.62% to 12.33 euros after the announcement by its CEO Jean-Bernard Lévy Tuesday start of EPR nuclear reactor Taishan 2, located in China.

Gensight jumped 17.48% to 1.48 euros, the biotech confirmed Wednesday its intention to file marketing applications for GS010, its gene therapy product has given positive clinical results.

? 2019 AFP